Bitcoin, Ethereum, Dogecoin Rallies Take Another Hit— Why Macroeconomic Factors Are Once Again On The Front Seat | Benzinga

Bitcoin and other major coins cooled off Tuesday night after a spike seen in their prices earlier in the week.

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin (CRYPTO: BTC) 0.6% 13.6% $44,056.13
Ethereum (CRYPTO: ETH) -0.7% 11.5% $3,113.53
Dogecoin (CRYPTO: DOGE) -2.9% 11.14% $0.16
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
UNUS SED LEO (LEO) +54.9% $7.49
IoTeX (IOTX) +22.1% $0.11
Kadena (KDA) +16.8% $9

See Also: How To Buy Bitcoin (BTC)

Why It Matters: Bitcoin prices took a tumble earlier when the U.S. Department of Justice seized $4.5 billion worth of cryptocurrency stolen during the 2016 Bitfinex hack. A husband-wife pair was arrested in connection with the incident in Manhattan on Tuesday morning.

In Tuesday’s intraday trading, Bitcoin touched a high of $45,293.87, while Ethereum rose to $3,219.47. At press time, the two coins were down 2.73% and  3.29% respectively from those levels.

Macroeconomic factors, which took a backseat on Monday, were back in force on Tuesday in determining the trajectory of Bitcoin. The U.S. unit strengthened as the dollar index — a measure of the dollar’s strength against six of its peers — rose 0.2%, according to a Reuters report.

“The Bitcoin rally is taking a break as exhaustion settles along with profit-taking as rising rates send the dollar higher,” said Edward Moya, a senior analyst at OANDA.

The analyst said while Bitcoin has had a “nice rebound” as it bottomed out near the $33,000 level, the $46,000 to $48,000 range “will prove to be significant resistance.”

“Bitcoin may start to consolidate between the $40,000 and $45,000 level until the US inflation report later this week,” said Moya, in a note seen by Benzinga.

Amsterdam-based cryptocurrency trader Michaël van de Poppe says Bitcoin faces a “crucial resistance” different from the one it saw in September 2021.

Meanwhile “Mega whales” of Bitcoin have increased their stashes significantly in the past 7 weeks. Addresses with 1,000 BTC or more have added a combined 220,000 BTC or $9.72 billion to their combined wallets since Dec. 23, as per Santiment, a cryptocurrency data feed for investors.

Read Next: One Of The Big 4 Accounting Firms Just Added Bitcoin And This Cryptocurrency To Its Corporate Balance Sheet In Canada

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